Project Sea Dragon develop up to 10,000 hectares of prawn production ponds, supported by a series of geographically separate facilities
Seafarms Group signs offtake agreement with large European seafood distributor
Wednesday, January 22, 2020, 06:00 (GMT + 9)
Under the agreement, products from Seafarms’ Project Sea Dragon will be marketed and sold by Primstar in Europe
Aquaculture company Seafarms Group Limited has signed an extensive offtake and marketing agreement with Primstar B.V. for the export and marketing of premium prawn products into Europe from Project Sea Dragon (PSD). The agreement will come into effect when PSD becomes operational.
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The Primstar offtake agreement is a comprehensive agreement setting out arrangements for the supply, sale and marketing or prawn products from PSD when operational. The key terms of the agreement include:
- Primstar will market black tiger prawns from PSD in European markets with the objective of building a high value, high quality and premium jointly branded product into these markets.
- Primstar has the right and obligation to take approximately 15% of the total annual production of the initial stage of PSD at market based prices. Volumes can be extended by agreement.
- The agreement has a minimum term of five years after commencement of PSD and may be extended for a further five years by agreement.
Primstar is a large European seafood supply and distribution company. Based in the Netherlands, Primstar and its related entities are substantial seafood producers and distributors handling approximately 12 000 metric tons of shrimp and other seafood products annually.
The Primstar group and Atlantic Shrimpers Ltd are partly owned by the privately-owned fishing company Cornelis Vrolijk. Atlantic Shrimpers Ltd provides Primstar with exclusive marketing and distribution from their large fishing company in Nigeria.